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First-Time Home Buyers

Buying your first home is a big step — you may be excited or nervous — or both. We understand and we will be your partners in this new experience. A Libro Coach shares bias-free advice when you’re buying your first home. We can own this promise because our Coaches are not earning the commissions paid to mortgage brokers. We help you consider a comfortable mortgage rate and choose the right type of mortgage that can weather changing interest rates. We’re here to help you enjoy your journey as a first-time home buyer.

Tips for First Time Home Buyers

  1. Research mortgage down payment options: If you have less than a 20% down payment, you’re required to get extra insurance through the Canada Mortgage & Housing Corporation (CMHC) and Genworth Canada. You can use your RRSP towards your down payment under the Home Buyers’ Plan. Gifts from family can also be used.
  2. There's more to a mortgage than interest rates: While interest rates are important, they’re not everything. A mortgage has to make sense for you and your lifestyle. The cost of the house, the type of mortgage, the amortization period, and mortgage payment options often have more of a bearing on costs versus interest rates.
  3. Get pre-approved for a mortgage before you go shopping: Getting pre-approved for a mortgage means you know the amount you can afford.
  4. Say yes to a home inspection: It’s a good idea to agree to a home inspection since it can reveal information that confirms your decision to buy or might make you rethink the property.
  5. Budget for everything: Don’t forget the closing costs. Your Libro Coach helps you list all the unexpected costs, including property taxes, insurance, regular maintenance, and renovations. A good rule of thumb for closing costs is to have 2% of the cost of the home set aside. Closing costs might include a home inspection fee, legal fees, property taxes, utilities, and moving costs.

Down Payment Options for First-Time Home Buyers

A down payment is the amount of money you pay up front towards the value of your new home. Your minimum down payment is calculated as a percentage of the property’s purchase price. As a first time home buyer, it’s important to think about your down payment amount in order to save money on your monthly mortgage payments and pay off your mortgage faster. With Ontario’s land transfer tax refund program, first-time home buyers may be eligible for a maximum refund up to $4,000 of the land transfer tax paid on their home purchase. Visit the Ontario Ministry of Finance site for more information.

Calculate the Mortgage for Your First Home

Are you buying your first house and navigating various mortgage rates and payments? Our easy online mortgage calculator can help you figure out what you can afford when buying your first home. You can test different scenarios to see how your mortgage payment is affected by the price of your first home, size of your down payment, frequency of payments, and amortization period. The mortgage calculator can also estimate your total monthly expenses and show how much you would pay if mortgage rates increase.

What type of mortgage is best for first time home buyers?

The type of mortgage you choose depends on your unique situation and needs. Many first time home buyers choose a fixed rate mortgage as their first option, as homeowners can count on a consistent interest rate. Contact a Libro Coach today for help choosing the right mortgage type for you.

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